Morgan Sindall Group has delivered record financial results against a challenging market backdrop – with a continued strong performance from its Fit-Out division.
Group revenue for the year ended 31 December 2023 was up 14 per cent to £4.1 billion compared to £3.6 billion in the prior year, while adjusted operating profit increased 2 per cent to £141.3 million.
Adjusted profit before tax for the group was reported at £144.6 million (FY2022: £136.2 million, up 6 per cent).
Revenue in the Construction division was up 18 per cent to £967 million, compared to £820 million in the previous financial period, with an operating margin of 2.7 per cent (FY2022: 2.8 per cent).
The group’s Fit-Out business also performed well, with revenue up 14 per cent to £1.1 billion (FY2022: £967 million) and operating profit up 38 per cent to £71.8 million (FY2022: £52.2 million).
Revenue in the Infrastructure division was also up, by 15 per cent, to £887 million compared to £768 million in the prior period, with an operating margin of 4.3 per cent (FY2022: 3.8 per cent).
However, cost pressures and “ongoing operational challenges” saw the group’s Property Services business report an adjusted operating loss of £16.8 million (FY2022: £4.3 million profit).
Morgan Sindall Group reported a net cash position of £461 million, up from £355 million in FY2022.
The group posted a secured order book value of £8.9 billion, up 5 per cent on the prior year (£8.5 billion).
Chief executive, John Morgan, said: “2023 was another record year for the group and these strong results reflect the high quality of our operations and the talent and commitment of our people.
“Despite facing market headwinds in the year and the disappointing losses in Property Services, the diversified nature of our operations and capabilities has allowed us to continue to make significant strategic and operational progress.
“In addition, our focus on positive cash flow together with our strong balance sheet has positioned us well to benefit over the long term from the opportunities available in our markets.
“Looking ahead, while there remains some uncertainty in the wider economy, reducing inflation and the prospect of lower interest rates provides a backdrop of confidence for the year ahead.
“Together with our high-quality and growing order book spread across a wide number of sectors covering the built environment, we are well-positioned for the future and on track to deliver a result for 2024 which is in line with our current expectations.”
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